U.S. Stocks Gain on S&P Prediction, Gold Soars Over $1,000 an ounce

By IBT Staff Reporter03/13/08 AT 4:35 PM

U.S. stocks gained for the second day this week, with the Dow Industrials recovering from a steep 235 drop, after Standard & Poor's predicted banks might end its subprime mortgage write downs and gold soared over the $1,000 an ounce benchmark.

The S&P report helped the market recover from losses spurred off by the potential collapse of a $16.6 billion fund owned by Carlyle Group while another weak report on retail sales added to recession concerns.

The S&P 500 added 6.7 points, or 0.5 percent, to 1,315.47 after dropping as much as 2 percent. The Dow Jones Industrial Average rose 35.5, or 0.3 percent, to 12,145.74.

The Nasdaq Composite Index gained 19.74, or 0.9 percent, to 2,263.61. Almost five stocks rose for every two that fell on the New York Stock Exchange.

Newmont Mining Corp., the world's second-largest gold producer, gained to its highest level since January after bullion advanced to a record.

Gold rose above $1,000 an ounce for the first time as mounting credit-market losses increased demand for the precious metal as a haven from the weakening dollar.